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Air Canada strike leader vows jail over forced arbitration

Air Canada strike leader vows jail over forced arbitration

The Sun5 hours ago
MONTREAL: A leader of the union on strike against Air Canada said on Monday he would risk jail time rather than allow cabin crews to be forced back to work by a federal labor board, raising the stakes in a battle that has disrupted flights for hundreds of thousands of travelers during tourist season.
The Canadian Union of Public Employees said the strike would continue until the carrier negotiates on wages and unpaid work, even after the Canada Industrial Relations Board (CIRB) declared the strike unlawful.
'If it means folks like me going to jail, then so be it. If it means our union being fined, then so be it. We're looking for a solution here,' said Mark Hancock, CUPE national president, at a press conference after a deadline by the board to return to work expired with no union action to end the strike. Canadian Prime Minister Mark Carney pleaded for a resolution. A domestic tourism boom has helped blunt the economic damage from tariffs imposed by Canada's biggest trade partner, the United States, and Air Canada is the country's biggest carrier.
'We are in a situation where literally hundreds of thousands of Canadians and visitors to our country are being disrupted by this action,' Carney told reporters in Ottawa. 'I urge both parties to resolve this as quickly as possible.'
Hancock said the union has not heard from the federal jobs minister or Air Canada since Friday. The third day of a strike by more than 10,000 flight attendants has stranded passengers and led Air Canada to suspend its third-quarter and full-year 2025 guidance, sending shares down nearly 3%. The airline has earned lower profit due to fewer bookings to the United States. The carrier, which normally carries 130,000 people daily and is part of the global Star Alliance of airlines, had planned to start ramping up operations on Sunday evening, after CIRB ordered the union to return to work and start binding arbitration.
In a message to cabin crew on Sunday seen by Reuters, an Air Canada executive told workers they would be accountable for defying the board's order and not returning to work.
'What your union has not explained is that by not returning to work, you are personally accountable for that decision,' said Andrew Yiu, vice president, in-flight service, for Air Canada's mainline and low-cost Rouge service. 'To be clear, there is no lockout in place, and the continued strike is illegal.'
The flight attendants, who are pushing for a negotiated contract, are striking for wages similar to those earned by cabin crews at Canadian carrier Air Transat, and to be fully paid for work on the ground, such as boarding passengers.
'I can tell you that if Air Canada thinks that planes will be flying this afternoon, they're sorely mistaken. That won't be happening today,' Hancock said.
Michael Lynk, professor emeritus of law at Western University in London, Ontario, said there are provisions in the Canada Labour Code that give the board and the court the right to issue fines and sanctions against the union and against individual workers.
UNPAID WORK
Crew are mostly paid when planes are moving, sparking demands by unions in the U.S. and Canada to change the model, and generating some vocal support from passengers on social media.
While passengers have largely expressed support for the flight attendants, some are growing weary of the uncertainty.
Danna Wu, 35, said she and her husband will have no choice but to drive from Winnipeg to Vancouver if the strike persists for a visa appointment. Although she believes Air Canada should pay its attendants more, the master's student at the University of Manitoba added, 'It's not responsible to strike and leave thousands of passengers in such chaos.' Air Canada's demands on unpaid work follow gains recently won by flight attendants in the United States. New labor agreements at American Airlines and Alaska Airlines legally require carriers to start the clock for paying flight attendants when passengers are boarding.
The government's options to force an end to the strike include asking courts to enforce the order to return to work and seeking an expedited hearing.
The minority government could also try to pass legislation that would need the support of political rivals and approval in both houses of parliament, which are on break until September 15, but has so far been cautious.
'The government will be very reticent to be too heavy-handed because in Canada, the Supreme Court has ruled that governments have to be very careful when they take away the right to strike, even for public sector workers that may be deemed essential,' said Dionne Pohler, a professor of dispute resolution at Cornell University. The previous Canadian government intervened last year to head off rail and dock strikes that threatened to cripple the economy, but it is highly unusual for a union to defy a CIRB order.
'If you're going to fine us or you're going to try and take us on financially, then you can take us to court, and we can see where that plays out,' said Hancock. - Reuters
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Air Canada strike: CEO cites big gap in pay offer vs union demands
Air Canada strike: CEO cites big gap in pay offer vs union demands

The Sun

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Air Canada strike: CEO cites big gap in pay offer vs union demands

MONTREAL: Air Canada's CEO on Monday defended the airline's offer of a 38% boost in compensation to striking flight attendants but said there was a big gap compared to the union's demand and did not offer a path to return to negotiations. CEO Mike Rousseau's comments to Reuters followed the striking union's refusal of a federal labor board's order to return to work. That refusal has created a three-way standoff between the company, workers, and the government, and raised the stakes in a battle that has disrupted flights for hundreds of thousands of travelers during tourist season. Canada's Jobs Minister Patty Hajdu told CBC's 'Power and Politics' on Monday afternoon that nothing prevents the two sides from returning to the table and negotiating an agreement, adding they could also opt for mediation. Flight attendants want higher wages and to be paid for time spent boarding passengers and other duties on the ground. 'At this point in time, the union's proposals are much higher than the 40%. And so we need to find a path to bridge that gap,' Rousseau said, without suggesting what that process would be. 'We're always open to listen and have a conversation,' he said. A leader of the union on strike against Air Canada said on Monday he would risk jail time rather than allow cabin crews to be forced back to work by a federal labor board. Rousseau said he was amazed the union was not following the law. The Canadian Union of Public Employees said the strike would continue until the carrier negotiates on wages and unpaid work, even after the Canada Industrial Relations Board (CIRB) declared the strike unlawful. 'If it means folks like me going to jail, then so be it. If it means our union being fined, then so be it. We're looking for a solution here,' said Mark Hancock, CUPE national president, at a press conference after a deadline by the board to return to work expired with no union action to end the strike. The union has said Air Canada's offer only accounts for 17.2% higher wages over four years. Canadian Prime Minister Mark Carney pleaded for a resolution. A domestic tourism boom has helped limit the economic damage from tariffs imposed by Canada's biggest trade partner, the United States, and Air Canada is the country's biggest carrier. 'We are in a situation where literally hundreds of thousands of Canadians and visitors to our country are being disrupted by this action,' Carney told reporters in Ottawa. 'I urge both parties to resolve this as quickly as possible.' Hancock said the union has not heard from the jobs minister or Air Canada since Friday. The third day of a strike by more than 10,000 flight attendants has stranded passengers and led Air Canada to suspend its third-quarter and full-year 2025 guidance, sending shares down nearly 3%. The airline has earned lower profit due to fewer bookings to the United States. The carrier normally carries 130,000 people daily and is part of the global Star Alliance of airlines. Michael Lynk, professor emeritus of law at Western University in London, Ontario, said there are provisions in the Canada Labour Code that give the board and the court the right to issue fines and sanctions against the union and against individual workers. UNPAID WORK Crew are mostly paid when planes are moving, sparking demands by unions in the U.S. and Canada to change the model, and generating some vocal support from passengers on social media. While passengers have largely expressed support for the flight attendants, some are growing weary of the uncertainty. Danna Wu, 35, said she and her husband will have no choice but to drive from Winnipeg to Vancouver if the strike persists for a visa appointment. Although she believes Air Canada should pay its attendants more, the University of Manitoba master's student added, 'It's not responsible to strike and leave thousands of passengers in such chaos.' Air Canada's demands on unpaid work follow gains recently won by flight attendants in the United States. New labor agreements at American Airlines and Alaska Airlines legally require carriers to start the clock for paying flight attendants when passengers are boarding. The government's options to force an end to the strike include asking courts to enforce the order to return to work and seeking an expedited hearing. The minority government could also try to pass legislation that would need the support of political rivals and approval in both houses of parliament, which are on break until September 15, but has so far been cautious. 'The government will be very reticent to be too heavy-handed because in Canada, the Supreme Court has ruled that governments have to be very careful when they take away the right to strike, even for public sector workers that may be deemed essential,' said Dionne Pohler, a professor of dispute resolution at Cornell University. The previous Canadian government intervened last year to head off rail and dock strikes that threatened to cripple the economy, but it is highly unusual for a union to defy a CIRB order. 'If you're going to fine us or you're going to try and take us on financially, then you can take us to court, and we can see where that plays out,' said Hancock. - Reuters

Air Canada CEO 'amazed' by union's strike defiance amid flight chaos
Air Canada CEO 'amazed' by union's strike defiance amid flight chaos

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Air Canada CEO 'amazed' by union's strike defiance amid flight chaos

CHICAGO/MONTREAL: Air Canada CEO Mike Rousseau said on Monday the airline was 'amazed' by the decision of its flight attendants' union to defy an order by the Canada Industrial Relations Board, which has declared the union's strike unlawful. The Canadian Union of Public Employees has said the strike would continue until the carrier negotiates on wages and unpaid work. The union's move surprised investors and raised the stakes in a battle that has disrupted flights for hundreds of thousands of travelers during tourist season. In an interview with Reuters, Rousseau blamed the impasse on a gap between the airline's offer and its union's demands, but did not share any plans to break the deadlock. When asked if he was willing to sweeten the offer, Rousseau said while the company was 'open to listen and have a conversation,' he backed the company's offer for a 38% total compensation increase over four years. 'That's a good offer from our perspective,' Rousseau said. 'And it addresses many of the issues that we talk about, if not all the issues.' He urged the striking flight attendants to return to work, saying the strike was 'illegal' and harming the airline's customers and brand. Earlier on Monday, the company suspended its third-quarter and full-year 2025 guidance, citing the labor disruption. 'We're still amazed by the fact that CUPE is openly not following the law,' Rousseau said. 'And that is very disappointing from our perspective.' Air Canada shares closed down 3%. BELOW MINIMUM WAGE The union has said Air Canada's offer only accounts for 17.2% in higher wages over four years, leaving its younger, entry-level workers struggling against inflation. An entry-level Air Canada flight attendant working full-time earns C$1,952 ($1,414.60) per month before taxes, which is 30% lower than that of a worker earning federal minimum wage, according to union data. Even with the airline's proposal, the attendant's earnings would remain below minimum wage, the union says. Rousseau, however, said the company's offer would 'go a long way' in addressing those issues. Air Canada accounts for about 48% of capacity on domestic routes and is the only Canadian carrier with an extensive international network in 65 countries, Cirium data shows. The third day of a strike by more than 10,000 flight attendants has stranded passengers of the airline, which normally carries 130,000 people daily and is part of the global Star Alliance of airlines. Rousseau said the carrier wanted to resume service as soon as possible, but stressed it needed 'the flight attendants to show up.' Once cabin crews return to work, it would take the airline up to 10 days to fully restore operations, he added. He said the airline would take care of flight attendants who traveled abroad ahead of the strike and now face difficulties returning. 'We'll have to find a way to repatriate them back to Canada in due course,' Rousseau said. Analysts at TD Cowen have urged the company to extend an 'olive branch' to the union to end the impasse, adding it was frustrating shareholders. Rousseau stressed he was the right person to lead the company through the labor dispute. 'I do think that the current structure, the current team members, are the right ones to take this company to the next level,' Rousseau said. ($1 = 1.3799 Canadian dollars) - Reuters

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